Individual income tax: other; employment withholdings redirected from the state to certain community colleges for the new jobs training program; clarify application to professional employer organizations. Amends secs. 703, 705 & 711 of 1967 PA 281 (MCL 206.703 et seq.). TIE BAR WITH: SB 425'25

SB 426 redirects a portion of employer income tax withholdings - currently sent to the state treasury - to fund job training programs at specific community colleges. It amends Michigan's tax code to require that withholdings from employee paychecks be redirected to community colleges for workforce development, rather than accumulating in state general funds. The bill also clarifies how these withholdings apply to professional employer organizations (PEOs) that handle payroll for other businesses. This policy change directly affects employers using PEOs and community colleges administering the new job training initiative.